From Nasdaq: 2025-06-25 22:47:00

Palantir (NASDAQ:PLTR) stock has surged nearly 5.5x in the past year, trading close to $140 per share with a market cap of $330 billion. The company is winning more contracts and showing progress in its commercial business, with U.S. commercial revenue rising nearly 70% year-over-year. However, analysts remain unconvinced with an average price target of $107.

Palantir has doubled down on generative AI, reporting Q1 2025 revenue of $883.9 million, up 36% year-over-year. With a strong balance sheet, recent contract wins, and CEO Alex Karp’s remarks on AI, the company’s growth prospects look promising. However, concerns over its high valuation at nearly 190x consensus 2026 earnings remain, raising questions about sustainability.

Despite its strong fundamentals and government contracts, Palantir’s high valuation at 190x earnings and 66x revenues compared to peers like Snowflake and CrowdStrike raises concerns. The company’s exposure to government contracts also poses risks, as shifts in budget priorities could impact its top line. The question remains whether Palantir’s performance justifies its current valuation.



Read more at Nasdaq: Palantir Stock’s Growth Is Real, But So Are Valuation Concerns